Employer Update November 26, 2019
Agenda ▪ Infor ormation mation updat dates es ▪ Focus cus on ser ervic vice ▪ Growth at the CAAT Pension ▪ Revised Pension Benefit Plan Application forms ▪ 2020 DCT schedule ▪ Year-end processing deadlines ▪ 2020 Rates ▪ 2020 Employer Training ▪ Employer attestation Schedule ▪ Employer and member survey ▪ Upcoming events results ▪ Service standards 3
Growth at the CAAT Pension Plan
New Employers joining CAAT ▪ We have had 7 new employers join the Plan this year: ▪ SHARE ▪ OPSEU Local 416 ▪ London Cross Cultural Learner Centre ▪ Postmedia ▪ The Canadian Press ▪ University of Saskatchewan ▪ Klos Concepts Inc. Uni Unit e d d Way of Grea eater er Toront onto o will be joining January 1 5
New member of the Employer Services team ▪ Dipak Patel ▪ Joined on October 15 ▪ Pension Analyst with Employer Services 6
2020 DCT schedule CONFIDENTIAL
2020 DCT schedule January June 30 2020 January 24 March 16 21 - 23 8
2020 Rates
2020 Rates ▪ YMPE: $58,700 ▪ Plan contribution rates – no changes for 2020 ▪ If your members participate in DBplus only, refer to your Participation Agreement for your applicable 2020 rate. ▪ 2020 Inflation protection rate: 1.47% ▪ AIW increase: 2.25% 10
2020 Rates – DBprime maximums ▪ DBprime RCA earnings threshold: $175,156 ▪ Maximum PA: $27,230 ▪ Maximum BE: $3,092.22 11
2020 Rates - DBplus maximums ▪ Money Purchase maximum (used to determine maximum DBplus contributions): $27,830 ▪ Total DBplus contributions: ▪ Member: $13,915 ▪ Employer: $13,915 ▪ Combined: $27,830 ▪ Maximum DBplus earnings: $154,611 12
Employer attestation
Employer attestation ▪ Plan requires employers to attest in writing annually that they complied with core areas of responsibility ▪ Common best practice for risk management among multi-employer pension plans and JSPPs 14
Employer attestation ▪ Attestation will be sent in January ▪ 2019 training record will be attached to support your organization’s attestation ▪ To be returned by March 31, 2020 15
2019 Member and Employer Surveys 16
New quest stions ions Member Survey Highlights ▪ Members trust in the Plan ▪ Top-2 scores very high (strongly agree and agree) – 81% for Actives and 92% for Retirees ▪ Members are aligned with Plan’s focus ▪ Members overwhelmingly agree with areas of focus: ▪ 94% Benefit Security ▪ 94% Value ▪ 82% Equity ▪ Members have an understanding of and support the Plan’s growth strategy ▪ Among those with an opinion, 92% said they understand growth and 98% support growth 17
New quest stions ions Employer Survey highlights ▪ Employers trust in the Plan ▪ Employer trust in Plan is unanimous at 100% ▪ 94% believe the Plan is sustainable ▪ Employers are aligned with Plan’s focus ▪ Employers agree with all five areas of focus, with strongest endorsement for: ▪ Benefit Security 98% ▪ Value for Members 91% ▪ Employers are aligned with Plan’s growth strategy ▪ 90% understand advantages of growth ▪ 86% support growth 18
Member Surveys 19
Active e memb mber ers Active member perception of value rising 23% increase in top-2 scores (good and excellent value) over 2018 Increase is due to significant shift from neutral to positive viewpoint Reasons for increase: ▪ Introduction of DBplus resonates with OTRFT ▪ Possibly greater awareness of risk aversion that a JSPP brings (increased media coverage on this topic) 20
DBplus lus memb mber ers DBplus has increased views of value among part-time members 29% increase in top-2 scores (good and excellent value) over 2018 Increase is due to significant decrease in both oth negative and neutral viewpoints vs 2018 ▪ Little value 29% 29% ▪ Reasonable value 17% Implications: ▪ DBplus is a valuable pension offering that is resonating with members 21
DBprim rime e membe bers Perceptions of value also increased for DBprime members The increase in excellent and good value ratings by members of DBprime at 31% is a surprise and exceeds increase for part- time members. Appears that awareness campaign on transition to DBplus had a ripple effect in strengthening awareness of CAAT’s value proposition for our DBprime members. 22
Pension knowledge = Higher Value 23
I attended an information session and my understanding came from that session. I developed a favourable opinion of the CAAT Pension plan at the session. Active member survey respondent 24
Retired etired memb mber ers Retired members continue to rate value highly Top 2 ratings (good and excellent value) are steady and strong (Increases are within margin of ▪ error) Receiving is believing 25
Employer Survey 26
8/10 Employers value Plan ▪ for attraction, retention, How employer CFOs and and workforce CHROs rate value of Plan management compared to cost 27
Emplo ployer ers Plan’s service to employers remains strong Not an option in 2019 Legend shows new wording per category, followed by prior wording. 28
Emplo ployer ers Employer’s view on service to members also strong Not an option in 2019 Legend shows new wording per category, followed by prior wording. 29
1 Employer and member portals 30
Ranking of employer portal features that would most help employers streamline pension administration 31
Ranking of member portal features that you feel would be most useful to members 32
Summary ▪ Key findings from the 2019 surveys ▪ Value proposition to members increased strongly across both full-time and part-time active members, and remains strong for retired members ▪ DBplus has had a positive impact on perceptions of value by part-time employees ▪ Employer views of service continue to be strong ▪ Understanding of the Plan drives perceived value ▪ Member presentations and one-on-one conversations have best results 33
CONFIDENTIAL
Revised Pension Benefit Application forms
Changes to Pension Application form ▪ Member signature no longer required on the form ▪ Section tion G G will be removed from both the smart form and PDF versions ▪ In the meantime, you can submit the current version of the form with no member signature until the revised forms are available. 36
Year-end Processing Deadlines
Year-end processing deadline – Dec ecem ember ber 2 ▪ Member documents for January 1 retirements: ▪ December 31 retirement applications should be with the Plan now ▪ Members must complete and return their Option Documents ▪ Purchase payment deadline: ▪ Ensure purchases are processed and reflected on the 2019 annual statements ▪ Outstanding payments must be submitted ▪ In-year reporting deadline: ▪ In-year leave start and stop forms, and change of information forms ▪ To have the data updated in our pension administration system to feed back to employers on the DCT 38
2020 Employer Training Schedules
Employer Training for 2020 ▪ 2020 Employer Training schedule will be on the website in December ▪ New for 2020 — 3 DCT training sessions: ▪ DCT Refresher for DBprime and DBplus ▪ Full DCT Training for DBprime and DBplus ▪ Full DCT training for DBplus-only employers ▪ Quarterly Employer Updates scheduled for February, April, July and November ▪ No Employer Education sessions in February or March 40
Upcoming events
Upcoming events ▪ Holiday office closures ▪ December 13 – closed at noon ▪ December 24 – closed at 1 pm ▪ December 25 – January 1; office re-opens January 2, 2020 ▪ Employer Attestation ▪ January 13 to 17 to Presidents/CEOs ▪ Due on March 31, 2020 ▪ Employer education session ▪ January 21 to 23 – DCT training sessions ▪ Employer update ▪ February 25, 2020 42
Service standards CONFIDENTIAL
Service standards – Q3 2019 Process Volume Target Attainment Average turnaround turnaround Retirements 303 30 days 99% 9 days 223 5 days 99% 1 day New pension starts 110 30 days 99% 10 days Deaths 190 30 days 99% 12 days Service purchase quotes 357 10 days 100% 2 days Pension estimates Terminations 364 30 days 100% 37 days Enrolments 1,330 10 days 100% 1 day 44 CONFIDENTIAL
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